Three directors who dishonestly secured credit have been banned for a total of 29 years after causing their companies to submit false invoices to factoring companies.
Deborah Mary Fisher of Spalding, Lincolnshire was the director of NJ Transport, a haulier based in Weston Hills.
Over two years between January 2016 and March 2018 she caused NJ Transport to submit false invoices to a factoring company totalling £425,500. The factoring company realised the invoices were false when NJ Transport was preparing to enter creditors voluntary liquidation in March 2018.
When the factoring company tried to recoup money from Deborah Fisher personally under her guarantor agreement, she declared herself bankrupt in May 2018.
Factoring companies purchase invoices from a business as a way of providing credit. It is common practice for the company director to personally guarantee all funds advanced.
In a separate case, Londoners Marcus Grose, of Enfield, and Dominic Worley, of Feltham, were directors of National Electrical Wholesale Limited. Incorporated in 2004, the company sold electrical goods to trade customers.
When National Electrical Wholesale experienced cashflow difficulties in June 2015, Marcus Grose and Dominic Worley caused the company to submit false invoices to a factoring company to secure credit.
Over the next 18 months, the electrical wholesale company submitted £550,000 worth of invoices from a total of 44 false debtors. The factoring company, however, uncovered the dishonesty when it queried some of National Electrical Wholesale’s invoices.
All three directors have been disqualified and are banned from directly or indirectly becoming involved in the formation, promotion or management of a company without permission of the court.
Fisher signed a nine-year disqualification undertaking, while Grose and Worley have each been banned for 10 years.
David Brooks, group leader of insolvent investigations for the Insolvency Service, said: "Factoring companies provide a vital service to companies experiencing cashflow difficulties, alleviating short term financial problems and allowing them to continue trading. These directors grossly abused this service.
"The disqualifications will severely curtail their activities for many years to come."